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Wells Fargo Arranges Senior Secured Term Loan Repricing, Upsize for Wyndham Hotel & Resorts

May 28, 2024, 07:48 AM
Filed Under: Hotel & Resort

Wyndham Hotels & Resorts successfully completed the repricing of its existing $1.1 billion Senior Secured Term Loan B Facility due May 2030. The Term Loan B garnered significant investor demand, resulting in an upsize of $400 million while in market and an attractive interest rate of Secured Overnight Financing Rate ("SOFR") plus 1.75%, which represents a 60 basis point reduction, at an issue price of 99.875% - the tightest priced new money raise in the entire SOFR era. The repricing on the existing $1.1 billion Term Loan B is expected to result in annual interest expense savings of approximately $6 million. There is no change to the Company's maturities or covenants from the repricing on the now combined $1.5 billion dollar facility.

Wyndham intends to use the net proceeds for general corporate purposes, including the repayment of outstanding balances under the Company's revolving credit facility.

Wells Fargo Securities acted as lead arranger. Deutsche Bank Securities, JPMorgan Chase Bank, BofA Securities, Barclays Bank PLC, U.S. Bank, The Bank of Nova Scotia and Truist Securities acted as joint bookrunners.

"The opportunity to reprice this loan with a meaningful spread reduction and upsize by $400 million would not have been possible without the outstanding performance of our business over the past year," said Michele Allen, Chief Financial Officer and Head of Strategy. "We are extremely pleased with the elevated market demand, which underscores strong investor confidence in our asset-light, highly cash-generative franchise business model and enabled us to secure best-in-class pricing, further fortifying our financial flexibility."

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